The EIU view

The Socialist Party (PS) government has been relatively stable. We expect the PS to win the October election but it is unclear if it will win a majority. Co-operation between the PS and the left-wing parties will continue. Portugal exited its EU/IMF bail-out in 2014 and by end-2018 it had fully re-paid its Fund loan. Structural reform momentum slowed and the weak financial sector poses risks. After rallying by 2.5% in 2017-18, real GDP growth will slow to 1.9% in 2019-23.

PS government survives censure motion
The censure measure never posed a serious threat to the government. For it to succeed, the conservative Popular Party would have needed to secure an absolute majority.